Apple has agreed to shell out more than $100 million in iTunes store credits in order to settle a class action lawsuit that alleged children were able to make app purchases on the iPhone and iPad without parental consent. The suit was filed two years ago by a group of five parents who were angry their kids were able to make in-game app purchases without their knowledge.
The suit alleged that Apple failed to adequately disclose the fact that third-part game apps, which are largely available free of charge and rated as appropriate for children, contained the ability to make in-app purchases.
To settle the dispute, Apple has agreed to give an iTunes store credit of $5 to more than 23 million people affected by the company’s negligence. Those with claims of purchases of $30 or more can elect to receive a cash refund instead of store credit. A hearing for the proposed settlement is scheduled to take place Friday. We are told that the final settlement figure could vary slightly.
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